5 Stocks to Buy That Are Poised to Beat on Earnings This Week

Earnings Season Overview - The fourth-quarter 2023 earnings season is showing better-than-expected results, with total earnings for S&P 500 companies up 4.9% year-over-year on 3.4% higher revenues [1] - As of February 20, 402 S&P 500 companies reported earnings, with 78.6% exceeding EPS estimates and 64.4% surpassing revenue estimates [1] - Total earnings for the S&P 500 in Q4 2023 are projected to increase by 5.5% with 3.2% higher revenues, following a 3.8% earnings growth in Q3 2023 [1] Top Stock Picks - Five stocks are identified as likely to beat earnings this week, all carrying a Zacks Rank 2 (Buy) and a positive Earnings ESP [2] - Stocks with a Zacks Rank 3 (Hold) or better and a positive Earnings ESP have a 70% chance of beating earnings estimates [2] HEICO Corp. (HEI) - HEICO has seen improved demand for its aerospace products due to a recovery in commercial air travel, with an expected earnings growth rate of 11.4% for the current year [3] - The company has an Earnings ESP of +1.77% and has recorded earnings surprises in the last four quarters with an average beat of 7.8% [3] Constellation Energy Corp. (CEG) - CEG operates in multiple power regions and has an Earnings ESP of +1.47%, with a Zacks Consensus Estimate for current-year earnings improving by 0.7% [4] - The company has recorded earnings surprises in two of the last four quarters, averaging a beat of 37% [4] Inter Parfums Inc. (IPAR) - IPAR is benefiting from favorable trends in the fragrance market and plans to allocate 21% of its annual net sales to advertising and promotion [5] - The company has an Earnings ESP of +7.14% and an expected earnings growth rate of 8.6% for the current year, with an average earnings surprise of 45.7% over the last four quarters [5] Apellis Pharmaceuticals Inc. (APLS) - APLS is experiencing strong sales growth due to the demand for its products, including Syfovre and Empaveli [6] - The company has an Earnings ESP of +28.35% and an expected earnings growth rate of 75.1% for the current year, with a significant improvement in the Zacks Consensus Estimate by 20.3% [6] Vaxcyte Inc. (PCVX) - PCVX is focused on developing novel protein vaccines and has an Earnings ESP of +12.29%, with a 4.6% improvement in the Zacks Consensus Estimate over the last 30 days [7] - The company has recorded earnings surprises in two of the last four quarters, averaging a beat of 1.5% [7]